We Compared Prices on 9 Auto Insurance Companies and You Won't Believe What We Found
n the article, How to Save Money Every Month on a Low Income, our viewers explored several ways to lower their household expenses. One of the strategies highlighted was getting an up-to-date price on automobile insurance in 2020.
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It can be a daunting task in both boredom and time-consumption to browse numerous websites finding which auto insurance has the cheapest car insurance. DollarOtter has you covered.
We researched nine companies to find which car insurance company has the cheapest full coverage auto insurance to ensure you get the lowest and most affordable auto insurance rate while exceeding most state-required minimums. (Scroll to bottom of page for your state requirements)
How Did We Determine and Calculate the Cheapest Car Insurance
Whether you are searching for the best auto insurance rates in states such as Arizona, California, Georgia, Michigan, North Carolina, Texas, or any state for that matter, our price comparison on auto insurance is a comprehensive research study.
It analyzes the largest and most popular insurance companies within the U.S. to assist our viewers in their online search.
The insurance companies we analyzed are Allstate, eSurance, Farmers, Geico, the General, Liberty Mutual, Progressive, State Farm, and USAA.
The most critical factors in determining consistency among each auto insurance company are using one avatar to act as our online shopper.
The avatar was consistent across each car insurance website identifying as a single male, mid-30s, single, and drives a 2014 Lexus GX 460, four-wheel-drive SUV.
The other vital factors ensuring each company quoted us based on the same coverage includes:
Bodily Injury Limits, $100,000 / $300,000
Property Damage Limit, $100,000 / $300,000
Uninsured / Underinsured Motorist Bodily Injury, $100,000 / $300,000
Uninsured / Underinsured Motorist Property Damage, $100,000 / $300,000
Other Than Collision Limits & Deductibles, $1,000
Collision Coverage & Deductibles, $1,000
The coverages inputted into each online auto insurer quote system exceed many state standards, and many may consider it as higher than what may be needed, but we weren't just searching for the bare-minimum required insurance. Our analysis reflects quality insurance coverage with the best possible pricing.
Out of the nine companies researched, The General Auto Insurance couldn't match the competition's $100,000 coverage limit for Property Damage and Uninsured / Underinsured Motorist Property Damage as they only offer coverage up to $50,000, the highest possible coverage. As you'll see, this had no impact to the pricing.
Also, because not every company offered similar add-on services, we declined the following:
Emergency Road Service
Lease Gap Coverage
Towing & Labor
Excess Electronic Equipment
Next, our calculation was based on a residence located in the Washington, D.C. metro area which is recognized as having the fifth-highest insurance premiums in the U.S.
Here is the comparative analysis, and we were shocked to discover which companies have the highest and lowest auto insurance premiums.
Automobile Insurance Rate Monthly Comparison for 2020
The Cheapest Auto Insurance Companies by Insurance Premiums
1. Progressive Auto Insurance
The most affordable car insurance in our analysis is Progressive quoting $349.04 for a six-month premium, or $58.17 a month. For an in-depth review of Progressive, check out Nerdwallet's Progressive Insurance Review 2020. ConsumerAffairs review rated this insurer just shy of 4 out of 5 stars.
2. Geico Auto Insurance
In second place for the best cheap auto insurance is Geico. At $75 higher than Progressive, the price quote for a six-month auto insurance policy is $424.14, or $70.69 a month. According to a ConsumerAffairs study, its customer service is just shy of 4 out of 5 stars; however, the positive reviews are overwhelming with many satisfied customers.
3. USAA Auto Insurance
Shy of 2,000 reviews, ConsumerAffairs reflects USAA earning only 2 stars out of 5 with most of the poor reviews stemming from its claims process. USAA is primarily for customers who have served in the Armed Forces or have family members who served or currently serving in the military. Its six-month premium came in third place, quoting us $419.65, or $71.57 a month.
4. eSurance Auto Insurance
In fourth place is eSurance. This firm had the most effortless process in getting a quote. Because its platform is primarily for online shoppers, after searching several websites, we could instantly tell the difference, and we were fans after the process. Its six-month premium came in at under $100 for $91.63 per month or $519 for a six-month premium. Also, its overall satisfaction rating is 3 1/2 stars.
5. State Farm Auto Insurance
Fifth place goes to the largest auto insurer in the U.S., State Farm earning just shy of 4 stars in its satisfaction rating. This big auto insurer offers discounts for safe drivers and teen drivers with good records with a network of more than 18,000 agents. Its quote was in the middle of the pack at $648.34 for a six-month premium or $108.06 a month.
6. Liberty Mutual Auto Insurance
As one of the oldest insurers still in existence, its the third-largest publicly held insurance company in the U.S. Its six-month premium quote was surprisingly higher than anticipated at $833.52 or $138.92 per month. According to ConsumerAffairs, it scored the worst with 1 1/4 star out of 5 due to increasing complaints about its customer service. Get your quote.
7. Farmers Auto Insurance
We love the commercials, but we don't like the prices! It came to a surprise the company earned just 2 stars in its overall satisfaction rating. Also, Farmers Auto Insurance was the third most expensive in our comparative analysis with its six premium at $1,111.50 or $185.25 a month. With its premium price, Farmers is known to provide more coverage than its competitors with additional add-on options such as new car replacement and accident forgiveness. However, we declined all extra add on services for our price comparison.
8. Allstate Auto Insurance
With many pros than cons, ConsumerAffairs reports the firm has excellent financial strength to meet its obligations and offers discounts for multi-policies and smart students earning it just shy of 4 out of 5 stars. Our price quote for six months came in as the second most expensive auto insurance at $1,242 or $207 per month. See if you can get a lower rate.
9. The General Auto Insurance
If you are a high-risk driver, then The General Auto Insurance may be for you. With decent ratings of 4 of 5 stars, the results in our analysis reflect The General Auto Insurance is the most expensive auto insurance.
For a six month policy, our Avatar is accident-free with no traffic violations or tickets, yet still would pay a six-month policy of $1,788.50 or $310.23 per month. Unlike many of its competitors, it doesn't offer a safe driver program or discount.
Monthly Premium Price Comparison
The Cheapest Auto Insurance of these 9 Car Insurance Companies
1. Progressive (get a quote)
2. Geico (get a quote)
3. USAA (get a quote)
The Most Expensive Auto Insurance Companies in our Comparative Analysis
1. The General Auto Insurance (get a quote)
2. Allstate Auto Insurance (get a quote)
3. Farmers Auto Insurance (get a quote)
Runners-Up: Liberty Mutual (get a quote)
What Risk Factors Do Auto Insurance Companies Analyze Impacting Your Price Quote
Every car insurance company must collect key data from anyone requesting a quote. Factors that help determine a price quote are gender, age, location, driving record, type of vehicle, and sometimes your credit.
Get an in-depth review of each of the factors here.
It is for this reason the avatar remained consistent in answering each question accurately.
What Are My State's Minimum Requirements for Auto Insurance Coverage
The research exceeded most, if not all, state standards. It is crucial to be adequately covered, so in the event, you have an accident, you can reduce your financial risk as best as possible.
Understanding your state's requirements is vital. Check this article "Understanding Minimum Car Insurance Requirements."
If you are unsure of the minimum standards, search online for your state insurance department's minimum requirements or read "How Much Car Insurance is Required in All 50 States."